BEWARE OF SCAMS

Moneylender scams can take many forms, and they often prey on individuals who are in financial distress or lack familiarity with lending practices. Here are some common types of scams to watch out for:

1. Upfront Fees: Scammers may ask for payment of fees before providing a loan, claiming it’s for processing, insurance, or other reasons. Once the fee is paid, they disappear without giving you the loan.
   

2. Fake Lenders: Fraudsters pose as legitimate lenders, often with professional-looking websites and documents. They may offer loans with very favourable terms to lure victims but will disappear once they have your personal information or upfront payments.
   

3. High-Pressure Tactics: Scammers may pressure you to act quickly, claiming that you need to accept their offer immediately or the opportunity will be lost. They use urgency to bypass your scrutiny and prevent you from thinking things through.
   

4. Unsecured Loan Promises: Be cautious of lenders promising large loans with no credit checks or without any form of collateral. Legitimate lenders will typically assess your creditworthiness or require some form of security.
   

5. Personal Information Theft: Some scammers may collect personal details under the guise of processing a loan application. They use this information for identity theft or to commit fraud.
   

6. Fake Check Scams: You might receive a check as part of a loan offer, but it’s counterfeit. The scammer will ask you to deposit it and send part of the funds back, often to cover fees or other expenses. When the check bounces, you’re left responsible for the entire amount.
   

7. Loan Consolidation Scams: Some scammers offer to consolidate your existing loans but charge high fees or require you to make payments to them directly, rather than to your creditors. This often results in you being further in debt.
   

8. Unrealistic Loan Terms: Offers that seem too good to be true, such as very low interest rates or extremely high loan amounts for minimal or no qualification requirements, can be a red flag.
   

9. Fraudulent Documentation: Scammers may provide forged or doctored documentation to convince you of their legitimacy. They might also use names and addresses that look real but are actually fake.
   

10. Money Transfer Requests: A common scam involves the lender asking you to transfer money via wire or other untraceable methods, often to “secure” your loan. Legitimate lenders will not require this.